Global Heiken-Ashi Smoothed (HAS): Candles that Clarify Trends
- May 6, 2025
- Posted by: Drglenbrown1
- Category: Technical Analysis / Algorithmic Trading
Objective: Explain HAS construction, smoothing parameters, and its role in reducing noise.
Audience: Chart technicians, systems developers.
Outline:
- HAS algorithm & smoothing logic
- HAS vs. standard Heiken-Ashi
- Trend identification & candle-color rules
- Integration with EMA zones
Global Heiken-Ashi Smoothed (HAS): Candles that Clarify Trends
1. HAS Algorithm & Smoothing Logic
The Heiken-Ashi Smoothed (HAS) technique begins with the classic Heiken-Ashi formula and adds an exponential smoothing layer to reduce noise while preserving the essence of price action:
1.1 Standard Heiken-Ashi Calculations
For each period t, compute:
where O,H,L,CO, H, L, CO,H,L,C are the raw open, high, low, and close prices.
1.2 Exponential Smoothing Layer
This smoothing attenuates erratic wicks and tiny reversals, delivering clearer trend candles.
2. HAS vs. Standard Heiken-Ashi
| Feature | Standard HA | HAS (Smoothed) |
|---|---|---|
| Responsiveness | High (more noise) | Moderate (filtered noise) |
| Trend Clarity | Good, but with false signals | Enhanced, fewer whipsaws |
| Lag | Lower | Slightly higher due to smoothing |
| Visual Cleanliness | Variable candle lengths | Consistent body sizes with smooth wicks |
| Use Case | Quick pattern spotting | Robust trend identification |
3. Trend Identification & Candle-Color Rules
- Bullish HAS Candle:
HAS_Close_t > HAS_Open_t- Color: Green (or your system’s bullish hue).
- Interpretation: Buyers in control; ideal when in synchronization with EMA zones.
- Bearish HAS Candle:
HAS_Close_t < HAS_Open_t- Color: Red (or bearish palette).
- Interpretation: Selling pressure; watch for trend shifts if supported by other signals.
- Neutral/Doji-Like Candle:
abs(HAS_Close_t - HAS_Open_t)< (some threshold)- Color: Gray or Neutral Hue.
- Interpretation: Indecision; combined with flat EMA zones suggests consolidation.
- Trend Entry Confirmation: A sequence of ≥3 consecutive green HAS candles when price is above the key EMA zone boundary (e.g., EMA 50) signals strong trend continuity.
- Trend Exit Warning: A red HAS candle closing below the preceding green body or below a strategic EMA can serve as an early exit cue.
4. Integration with EMA Zones
HAS candles become exponentially more powerful when overlaid on GATS’s color-coded EMA zones:
- Trend Filter: Only consider HAS bullish signals (green bodies) when price resides above the Value Zone (EMA 26–50).
- Entry Signal:
- Price tests or briefly dips into the Transition Zone (EMA 16–25) and the HAS candle turns green—an optimal pullback entry.
- Confirm with EMA 8 crossing above EMA 25 within the same bar for added conviction.
- Exit Enhancement:
- When a HAS candle closes bearish (red) and price is below the Acceleration Zone (EMA 9–15), prepare to exit.
- Use HAS-based stops: for instance, place a stop just below the low of a bearish HAS candle that breaks the lower EMA boundary.
By fusing HAS clarity with EMA-zone structure, traders gain a noise-reduced, color-driven roadmap for precise entries and disciplined exits.
About the Author
Dr. Glen Brown, President & CEO of Global Accountancy Institute, Inc. and Global Financial Engineering, Inc., holds a Ph.D. in Investments and Finance and has spent over 25 years refining algorithmic trading frameworks. He pioneered the Heiken-Ashi Smoothed (HAS) integration within GATS to bring trend clarity to multi-timeframe strategies.
Risk Disclaimer
This article is for informational purposes only and does not constitute investment advice. HAS and EMA strategies carry risks, including model lag, false signals, and execution slippage. Always conduct thorough backtests and consult qualified professionals before live deployment.